A lot of people sit down to negotiate with a vague sense that they want a better deal. In the Framing module of the Academy of Business Negotiations, that is not a target. That is a wish. A thin target like five percent off has the same problem: no data behind it, and it traps the conversation in cost.
Set the target first. Asks, anchors, and concessions all flow from it.
Ground the number in data
A real target is built from KPIs, cost structure, market comps, comparable deals, and what the relationship and leverage can actually support. It should be ambitious and realistic. High enough that you are not leaving profit on the table. Defensible enough that it survives scrutiny. If you cannot explain the number from the math, you do not have a target yet.
Comfort is a poor filter. The number that feels easy to ask for is often the number that underperforms. The number you can justify with comps, cost analysis, and volume projections is the one that belongs on the table.
Hold two targets, not one
The deal target is what this specific negotiation needs to produce: a price point, a margin, a set of terms. It is concrete and based on analysis. You only get that number through real work on the P&L, not from a round percentage that sounded tidy in prep.
The daily target is incremental improvement in an existing relationship. Payment terms on one outsized buy. A tighter lead time. A one-time freight concession. Those small yeses compound. They also create a precedent you can reopen at the next annual review. A counterpart who already said yes once is easier to move at the account level later.
Everything else follows the target
Once the target is set, the rest of the framing gets simpler. You know what you are negotiating toward. You know whether a counter still improves profit dollars. You know which trades are worth it and which are not worth it. Without that number, you are reacting to their agenda instead of running your own.
Practical takeaway: Write the deal target and the daily target in dollars before you open.
Want the framework behind this? Download the free 5 Laws of Negotiation ebook: 5laws.negotiationsacademy.com
